Consumer Borrowing Soars in April

U.S. consumers took on more debt in April than in any month since November, another sign that consumers are willing to spend as long as retailers offer discounts or no-interest financing.

Non-mortgage debt outstanding rose by $8.9 billion in April after a March increase of $6.8 billion, which was larger than previously reported, the Federal Reserve said. A surge in credit card use and growth in auto loans contributed to the April gain, which exceeded the $7-billion rise analysts expected.

Revolving debt, which includes credit cards, grew by $4.2 billion, the biggest increase since November, after a $2.3-billion gain in March. Nonrevolving credit, which includes auto loans and education expenses, rose by $4.8 billion after a $4.4 billion gain in March, the Fed said.